The franchise contract Pamela signed with DEF Company specified she would have an exclusive sales territory.While the contract was still in force,DEF opened a corporate-owned store within her territory.DEF is guilty of:
A)master licensing.
B)encroachment.
C)due diligence.
D)churning.

Question

Quizplus · Accepted Answer

Encroachment occurs when a franchisor opens a location within a franchisee's exclusive territory, violating the terms of the franchise agreement. This is what DEF Company did by opening a corporate-owned store in Pamela's territory.

The Franchise Contract Pamela Signed with DEF Company Specified She